TAX APPEALS IN CAPE CORAL

Tax Appeals

Opinions often vary between individuals or business entities and the IRS over just how much property the government can legally demand from them at any given time. As tax attorneys, we at the Rothrock Law Firm are often hired to resolve such controversies. Our clients are usually a bit scared of both the IRS and their powers, and the prospect of losing their property. We understand why they immediately want to know what their rights are in relation to the IRS.

We first counsel our clients by assuring them that the IRS is just an administrative agency of the executive branch of the US government, and while powerful, the agency is not immune from giving taxpayers due process before demanding property or from following the Tax Code in determining the amount of tax and penalties the demand. We counsel further that most taxpayer disputes with the IRS are settled by the IRS and taxpayer or their attorney at this, what is called the “administrative level,” and that they are entitled to a further, judicial review of their claim for tax relief if they cannot reach an agreement with the IRS. (This right to judicial review extends beyond the original forum where the“tax trial” was heard, to the United State Courts of Appeal. The United State Supreme Court may even be petitioned for certerori in tax cases; however, there is no appeal as a matter of right. )

We explain that over 100,000 tax appeals are filed each year, and that the most powerful right that they have in their dispute with the IRS, is the right of appeal of an adverse tax decision. We counsel that aggressive attorney taxpayer representation is key, because without the threat of appeal surrounding their behavior and decisions, the IRS has no incentive to compromise and settle tax controversies, nor act in such a manner that ensures due process is afforded, now or in the future. We also caution that these appeals are not automatic and that proper legal procedure is essential to assert this powerful negotiating tool.

What Types of Tax Appeals are Available in a Tax Dispute with the IRS?

There are two types of appeals available in a tax controversy. The first type of appeal – the administrative level appeal, is made to IRS appeals officers. If the appeals officers make a determination favorable to the IRS, despite contrary evidence, do not apply the Tax Code properly, or if proper procedural due process is not afforded at the administrative hearing, the Constitutional separation of powers protection kicks in and provides for judicial branch overview of the IRS disposition of the dispute. This judicial review process usually starts and ends in the US Tax Court. Though taxpayers may choose to litigate tax matters in a variety of legal settings, only the Tax and Bankruptcy Courts provide a forum in which taxpayers may do so without having first paid the disputed tax in full. Judicial appeals are available from these courts, if the judge does not properly apply the Tax Code, or fails to ensure proper procedure was followed. The most popular forum for appealing the tax “ trial courts’, is the Federal Courts of Appeal. A final appeal is available on an even more limited basis from the US Supreme Court. This appeal is not available as a matter of right, but instead rests upon the Courts’ discretion. The Supreme Court is generally careful to choose only cases which the Court considers sufficiently important, such as cases involving deep constitutional questions, to merit the use of its limited resources. Properly asserting your Constitutional rights to due process, including your right to“tax appeals”, is essential to leveling the playing field with the IRS in your tax controversy. Just the threat of using this powerful tool curbs abuse and often results in more favorable results for taxpayers. Attorneys at the Rothrock Law Firm are licensed to appear before the United States Tax Court in all fifty states and are available for office or virtual consultations.

If You Wish to Appeal a Tax Decision in Cape Coral, Contact the Rothrock Law Firm, Cape Coral tax attorneys: